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Why selling to an investor isn’t always a good idea

On Behalf of | Mar 5, 2019 | Residential Real Estate |

Real estate investors in California and throughout the country could be willing to buy a home if they think doing so could be profitable. However, there are upsides and downsides to doing so. For instance, selling a home to an investor may avoid a foreclosure and the credit problems that can come with it. Of course, it is important to understand that the home will likely sell for less than market value.

This allows the buyer a greater opportunity to make a profit. In addition, it is possible that a seller becomes the victim of a real estate scam. Sellers should do proper due diligence before liquidating their properties regardless of how fast they need to complete the deal. Individuals may be able to use Google to research a potential buyer to determine if it is trustworthy.

While it may be possible to forego a real estate agent when selling a home directly to an investor, this isn’t always a good thing. In some cases, a seller may not actually save money on the deal overall. This can be in spite of the fact that he or she may not need to pay the 5 or 6 percent commission that such a professional is usually entitled to.

Individuals who need to sell their homes quickly may have many options to do so. It may be in a seller’s best interest to contact an attorney prior to closing on a deal. This may make it possible to review contract terms before they become binding. An attorney may also help with the due diligence process if a buyer is an investor as opposed to a family or other traditional buyer. If problems arise during the home sale process, legal counsel may help resolve those issues.